What Is the LA Mansion Tax? Measure ULA Explained for 2026

The LA "mansion tax" is Measure ULA, a City of Los Angeles transfer tax on high-value property sales.

As of July 1, 2026, it adds 4% to sales above $5.4 million and 5.5% to sales of $10.9 million or more. It's charged on the entire sale price, not just the amount above the line, and the seller usually pays it.

That one detail changes how homes near those numbers should be priced. Here's how it works, where it applies, and how I think about it with sellers.

How Much Is the Mansion Tax in 2026?

Measure ULA sits on top of the transfer taxes that already apply to every sale in the city. According to the Los Angeles Office of Finance, the city rates for closings after June 30, 2026 look like this:

• Up to $5.4 million: no ULA. Just the city's base tax of 0.45%.
• Over $5.4 million and under $10.9 million: 4% ULA plus the base tax, for 4.45%.
• $10.9 million or more: 5.5% ULA plus the base tax, for 5.95%.

LA County adds its own transfer tax of about 0.11% on top of those.

The thresholds started at $5 million and $10 million in 2023, and they adjust for inflation each year. So always check the current numbers before you price anything.

What It Looks Like in Real Dollars

Percentages are easy to skim past. Dollars aren't.

• $5 million sale: $22,500 city base tax plus $5,500 county, or about $28,000 total.
• $6 million sale: $240,000 ULA, plus $27,000 base and $6,600 county, or about $273,600 total.
• $12 million sale: $660,000 ULA, plus $54,000 base and $13,200 county, or about $727,200 total.

A $1 million difference in price creates a difference of roughly $245,000 in transfer tax.

And the tax is based on the price. Not your profit. Your original purchase price and your remaining mortgage don't reduce it.

The Cliff Most Sellers Don't See Coming

Because ULA applies to the whole price, there's a cliff at each threshold.

A sale at exactly $5.4 million owes no ULA. A sale at $5.41 million owes $216,400.

So a higher price can leave you with less money. Counting city and county transfer taxes, but before commissions and other costs, you'd need to sell for about $5.63 million just to net what you'd keep at $5.4 million. At the next threshold, you'd need about $11.07 million to match a sale just under $10.9 million.

Everything between those numbers is what I'd call the dead zone. Every dollar in that range is working against you until you clear the other side.

Does It Apply to My Home?

Only if the property is inside the City of Los Angeles. A "Los Angeles" mailing address doesn't settle that, so we always confirm the actual parcel.

Generally covered: City of LA neighborhoods such as Brentwood, Bel Air, Westwood, Venice, Mar Vista, Palms and Pacific Palisades.

Not covered by ULA: separate cities and unincorporated areas such as Beverly Hills, Santa Monica, Culver City and Marina del Rey.

That doesn't mean those areas are all tax-free. Santa Monica's Measure GS charges a city rate of 5.6% on sales of $8 million or more, and Culver City uses its own tiered rates of up to 4%.

Block to block, the math can change. If you're anywhere near a city line, check first.

How to Price a Home Near the Line

This is where strategy matters most. If your home's value is anywhere close to a threshold, a few things are worth thinking through before you list.

Run your net at several prices. Compare what you'd actually keep at $5.4 million, $5.5 million and $5.7 million. The list price that sounds best is not always the one that pays you the most.

Decide which side of the line you belong on. Some homes should sit at or just under the threshold. Others have the value to clear the dead zone convincingly. Listing in between, without a plan, invites a negotiation that can cost you money either way.

Plan for the negotiation before it happens. Say you're holding at $5.4 million and a buyer offers $5.45 million. It sounds like a win, but it would likely put you far behind. You want to know that number before an offer arrives.

Watch the calendar if you're close. Thresholds reset each year, and the tax follows the rules in effect when the sale closes. If you're just above the line, a closing date on the other side of July 1 could matter. It's only worth planning around once the new number is known, though.

Bring in your tax advisor early. I can walk you through the market and the math, but how a sale affects you personally is a question for your CPA or attorney.

Are There Any Exemptions?

A few, and they probably won't apply to a typical homeowner.

The exemptions turn mainly on who is buying, such as qualified affordable housing organizations, certain long-established nonprofits and government agencies. Living in the home as your primary residence doesn't exempt it.

One measure to watch: Proposition TE on the November 3, 2026 city ballot would exempt certain owners selling residential property damaged or destroyed in the Palisades Fire. If you may be affected, confirm the outcome and the requirements with the city.

Final Thoughts

The mansion tax isn't a reason to avoid selling. It's a reason to price with the numbers in front of you.

A few hundred thousand dollars can depend on where your list price sits and how you handle the first offer. That's worth figuring out before you go live, not after.

If your home could be anywhere near one of these thresholds, Mike Goldfarb Properties is glad to run your numbers with you. Request a home valuation or reach out anytime, (310) 490-0026, and let's talk it through.

This article is general information as of November 2026, not tax or legal advice. Rates and thresholds change, so please confirm them with the city and your own advisors.